The EV maker's shares were down about 8% after the bell.
As part of what the company called an "operational reset," Lucid is aiming to save $1.4 billion in cash this year, primarily by cutting production and inventory after posting mounting losses in the second quarter.
U.S. electric vehicle manufacturers have been grappling with lower demand since the removal of key tax credits late last year, pushing companies to pause or cut production and cancel new EV plans, and instead focus on delivering more affordable models.
Lucid too is counting on a smaller and cheaper mid-size vehicle platform it is developing to fuel future growth, while pursuing a robotaxi rollout through partnerships with Uber (UBER.N) and self-driving startup Nuro, but until those efforts start raking in revenue, the company is prioritizing tighter cost controls.
CEO Silvio Napoli told Reuters the company's luxury Air sedans and Gravity SUVs were launched "a bit in haste" and that he did not want to "repeat the mistakes of the past."
"My objective is that we launch mid-size when it is ready to be on quality," Napoli said in an interview. "Precipitating the launch before everything is aligned would just be, I think at this stage, really a terrible mistake."
Lucid's factory in Saudi Arabia, where it will start production of the mid-size platform, will be ready by the end of this year, Napoli said. But getting the supply chain in order will take longer, he added.
The company has been navigating supplier-related issues that have disrupted production, especially since the launch of its Gravity SUV.
CASH SAVINGS
Lucid's projected savings of $1.4 billion include an estimated $600 million to $800 million cut in inventory. The company said it "deliberately reduced production to better align output with anticipated demand."
It also plans to cut capital expenditure by about $500 million and operating expenses by $200 million, with recent job cuts expected to save about $158 million annually.
The plan comes weeks after it denied as "completely false" a report about a potential take-private deal or a Chapter 11 bankruptcy filing.
Backed by Saudi Arabia's Public Investment Fund (PIF), Lucid said last month it would cut about 18% of its U.S. workforce and appointed former Schindler chief Napoli as CEO, after suspending its 2026 production outlook.
Napoli did not provide fresh guidance for 2026, but said he expected production to drop through the rest of the year, while deliveries improve from the first half.
Lucid's production and deliveries are expected to fall short of current market estimates, Napoli said on the post-earnings call with analysts. Wall Street expects the company to produce 24,964 vehicles and deliver 21,859 of them this year, according to Visible Alpha.
Last week, a regulatory filing showed Saudi billionaire Prince Alwaleed bin Talal Al Saud had taken a 5% stake in the company.
"Recently secured financing, in conjunction with operational actions the company is taking, is expected to provide sufficient liquidity runway well into 2027," Lucid said on Tuesday.
For the quarter ended June, the company reported a 56% rise in revenue to $405 million, below analysts' average estimate of $416 million, according to data compiled by LSEG.
The company posted an adjusted loss of $2.78 per share, up from a loss of $2.35 per share a year earlier, and higher than the $2.42 per-share loss analysts were expecting.
